Lafarge Tarmac to be sold to CRH
CRH plc enter into binding commitment to acquire assets being disposed by Lafarge and Holcim
AS part of their proposed merger, Lafarge and Holcim have entered exclusive negotiations with CRH regarding the sale of several assets for an enterprise value of €6.5 billion (£4.9 billion).
The assets for sale comprise operations mainly in Europe, Canada, Brazil and the Philippines, including Lafarge Tarmac in the UK (with the exception of Cauldon cement works).
Taken as a whole, the assets being disposed of generated estimated sales of €5.2 billion (£3.9 billion) in 2014, with an estimated operating EBITDA of €744 million (£560 million).
CRH, who have now entered into a binding commitment to acquire the assets, propose to fund the transaction though a combination of €2 billion (£1.5 billion) in cash, new debt and a 9.99% equity placing.
The sale is subject to the successful completion of the Lafarge Holcim merger and regulatory approvals, the closing of which is expected in the first half of 2015.
